Kusumgar IPO Subscription Hits 32% on Day One; Grey Market Premium Signals Potential Listing Surge

Kusumgar IPO Subscription Hits 32% on Day One; Grey Market Premium Signals Potential Listing Surge​

The Kusumgar Limited Initial Public Offering (IPO) has garnered a solid investor response on its first day of bidding. The Rs 650-crore issue, which opened today, July 8, was subscribed to approximately 32 percent by 10:30 AM. This offer will remain open for investors through July 10.

According to data from the National Stock Exchange (NSE) up to 10:30 AM, total bids amounted to 36,42,100 against 1,14,68,094 shares offered across all categories. This translates to an overall subscription level of nearly 0.32 times the issue size.

Subscription Breakdown and Market Sentiment​

Non-institutional investors led the initial bidding process, contributing a strong 64 percent towards the portion reserved for them. Retail individual investors followed at 36 percent of their allocated quota shares. The employee category saw subscription stand at 18 percent of the shares set aside for staff.

In unofficial markets, Kusumgar shares were commanding a significant premium, reaching up to 40 percent on the morning of July 8. IPO Watch reported a Grey Market Premium (GMP) of Rs 168 per share. This GMP suggests a potential listing gain of 40.10% over the upper end of the price band. It is important to note that market participants regard the GMP as an unofficial indicator subject to volatility.

IPO Structure and Issue Details​

The company has set the price band for the equity shares at Rs 398 to Rs 419, with a face value of Re 1. The entire IPO constitutes an Offer for Sale (OFS) of 1.55 crore equity shares, meaning the company will not receive any proceeds from this offering.

The book-building structure allocates 50 percent of the net offer to Qualified Institutional Buyers (QIBs). Retail investors have been allocated 35 percent, while non-institutional investors received 15 percent. Investors are eligible to apply for a minimum of 35 equity shares in multiples thereafter. At the upper price band, the minimal investment required for retail investors is Rs 14,665.

Anchor Investor Participation and Financial Overview​

Before the public issue commenced, Kusumgar successfully raised Rs 193.9 crore from anchor investors on July 7. This allocation involved 46,28,877 equity shares at Rs 419 each. Key participants in this round included BlackRock Global Funds, Goldman Sachs Funds, Kotak Mahindra Life Insurance Company, and domestic mutual funds like SBI, ICICI Prudential, and Tata Mutual Fund.

Examining the company's financial trajectory, revenue from operations stood at Rs 692 crore in FY26, up from Rs 467.9 crore in FY24. Net profit rose to Rs 98.2 crore in FY26, compared to Rs 84.3 crore in FY24. However, the data also indicates that on a year-on-year basis, revenue declined 11.2 percent and net profit fell 12.3 percent in FY26, attributed to deferred defence orders and US tariff impacts on exports.

Company Profile and Listing Details​

Kusumgar was established in 1990 and specializes in manufacturing woven, coated, and laminated synthetic fabrics. These fabrics cater to critical segments including aerospace, defense, industrial, automotive, outdoor, and lifestyle markets.

The company operates six manufacturing facilities located in Gujarat and maintains one fabrication unit in Uttar Pradesh. With a vast portfolio of over 1,000 unique Stock Keeping Units (SKUs), Kusumgar serves specialized industry needs. The IPO is scheduled to list on the BSE and NSE, with a tentative listing date set for July 15. Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors are the book-running lead managers, while Bigshare Services acts as the registrar.